Reporting Underpayment

If you discover you are being paid less than the statutory minimum:

  1. Talk to your employer: It might be a payroll error that can be easily fixed.
  2. Contact ACAS: The Advisory, Conciliation and Arbitration Service provides free, impartial advice on employment rights.
  3. Report to HMRC: You can report an employer anonymously to HM Revenue and Customs (HMRC). They have the power to investigate, issue fines (up to 200% of the arrears), and name and shame non-compliant employers.

Comparison: April 2025 vs April 2026

The increase to the National Living Wage in 2026 represents a continued effort to align wages with the cost of living. In April 2025, the rates were lower, and the gap between the 18-20 rate and the 21+ rate was different. The 2026 update to £12.21 for those 21+ ensures that full-time workers see a tangible increase in their annual earnings, pushing the base full-time salary towards the £24k mark.

Accommodation Offset

If your employer provides you with accommodation (e.g., you live on a farm or in a hotel where you work), they can take this into account when calculating your pay. This is known as the "accommodation offset." There is a daily limit to how much can be offset against the minimum wage. If your employer charges more than the offset rate for rent, the excess amount is taken off your pay for minimum wage calculations.

Frequently Asked Questions

Minimum Wage Calculator UK 2025/26

Who is entitled to the National Living Wage?

The National Living Wage applies to any worker aged 21 and over. Before 2024, the age threshold was 23, but it has since been lowered to include younger workers.

What is the difference between NMW and NLW?

The National Living Wage (NLW) is essentially the highest tier of the National Minimum Wage (NMW). The NMW refers to the rates for those under 21 and apprentices, while the NLW refers to the rate for those 21+.

Can I opt out of the minimum wage?

No. You cannot sign away your rights to the minimum wage. Even if you agree to work for less in writing, that agreement is not legally binding, and your employer is still breaking the law.

Does the minimum wage change every year?

Yes, the rates are reviewed annually by the Low Pay Commission (LPC), who make recommendations to the government. New rates typically come into effect on April 1st of each year.

Are interns entitled to minimum wage?

It depends on their employment status. If an intern is classed as a "worker" (e.g., they have set hours and duties), they are usually entitled to the minimum wage. Voluntary workers at a charity or students doing a work placement as part of a course are typically exempt.

About the Author: is a financial content specialist at UK Calculator, dedicated to simplifying complex UK tax and wage legislation for everyday users. This page was last updated on February 20, 2026.